Impact of corporate social responsibility on bank’s corporate image

Abstract

PurposeThe purpose of this study is to investigate the impact of the corporate social responsibility (CSR) on the corporate image in the banking sector. The focus of the study is on four main components of CSR, which are economic, legal, ethical and philanthropic.Design/methodology/approachA model was used in this study to show the impact of different CSR’s factors on corporate image; (240) banks customers were approached using a questionnaire, where (155) responses were received and (144) valid responses entered for analysis.FindingsThe findings revealed that customers perceive CSR activities as a main element when dealing with banks. The corporate image is strengthened when banks adopt such activities, and positive and significant relationships were statistically found between CSR activities and corporate image. These activities differ in importance as perceived by banks’ customers.Research limitations/implicationsEnlarging sample size, involving more stakeholders such as employees and managers, and replicating the study in other countries would enrich the findings.Practical implicationsBanks are advised to consider the study factors in their activities and act as champions of CSR for the welfare of the society to strengthen their corporate image.Originality/valueMany studies have discussed the issue of CSR, but very few are found in the Middle East, particularly in Bahrain, and in the banking sector. This paper calls for more investigation in this area for a better understanding of CSR activities and their effects on the corporate image.